Renewing your auto insurance might feel like just another task on your to-do list, but it's a chance to make sure your coverage still fits your life. Whether you're sticking with your current policy or considering a change, taking a few minutes to review your options can help you feel confident you've selected the right plan.

How often does my auto insurance need to be renewed?

Auto insurance policies typically need to be renewed every six or 12 months, depending on the terms set by your provider. Renewal is an opportunity to review your coverage and make adjustments based on changes in your driving habits, vehicle value, or personal circumstances. Renewal notices usually arrive several weeks before your policy expires, giving you time to compare rates, explore new discounts, or make changes as needed.

What happens if I don't renew my insurance on time?

Failing to renew your auto insurance on time can have serious consequences. A lapse in coverage may leave you legally unprotected, which can result in fines, penalties, or even the suspension of your driver's license in some states. Additionally, if you're involved in an accident without active insurance, you may be responsible for damages out of pocket.

Even a short gap in coverage might affect your future insurance rates. Some insurers consider a lapse in coverage as a risk factor, which could lead to higher premiums when you purchase a new policy. Setting a reminder or planning ahead can help you avoid any unintended gaps.

Is it a good idea to set my insurance to auto-renew?

Many insurance companies offer automatic renewal options to simplify the process. Auto-renewal may be convenient because it ensures your coverage continues without interruption, even if you forget about the renewal date.

However, relying solely on auto-renewal may cause you to miss opportunities to update your coverage or take advantage of lower rates elsewhere. It's a good idea to use your renewal period as a time to review your policy, even if you ultimately decide to keep the same provider. Comparing quotes, checking for new discounts, and reassessing your needs can help you make sure your insurance still fits your situation.

What should I consider when choosing to renew or change insurance?

Before you automatically renew your current policy, consider evaluating a few important factors that could impact what coverage or policy holder is best for your situation.

• Change in Driving Habits: If you're driving less due to remote work or other changes, you may be eligible for lower rates.
• New discounts: Life changes, such as getting married or improving your credit score, might qualify you for discounts you weren't eligible for when you first signed up.
• Vehicle value: If your car has depreciated significantly, you might not need as much coverage as before. Conversely, a new vehicle could require more protection.
• Customer service: If you've had poor experiences with claims or customer support, it might be worth shopping around for a new provider.
• Coverage needs: Evaluate whether your current coverage still meets your needs. You may want to add roadside assistance, rental car coverage, or higher liability limits.